Vedanta Resources' share price leaps 15 per cent after the firm says it expects zinc production to rise and declares an interim dividend

I'm City A.M.'s deputy night editor. Previously I reported on industrials, covering mining energy, utilities and military, and prior to that I reported on vice "sin"-dustries (think alcohol, tobacco and gambling) and the leisure sector.

Vedanta Resources is a metals and mining group (Source: Vedanta Resources)

Francesca Washtell

FTSE 250-listed metals group Vedanta Resources' share price rocketed more than 15 per cent today after the firm said it expected its zinc production to rise and declared an interim dividend.

The figures

Revenue at the India-based group dipped 15 per cent to $4.9bn (£3.9bn) in the six months to 30 September, while earnings before interest, tax, depreciation and amortisation (Ebitda) fell four per cent to $1.2bn.

Silver production increased six per cent in the first half at Zinc India, while aluminium had its highest ever half-yearly production. In the second half, zinc production is expected to be "significantly higher". Vedanta booked a 25 per cent fall in revenue in the metal over the first half.

Vedanta's highest Ebitda margin in two years, at 33 per cent, prompted the group to declare an interim dividend of 20 cents per share, compared with no interim dividend in the first half of last year.

The group's wide-ranging cost optimisation strategy to save $1.3bn, set out in 2015, led to a narrowing in the basic loss per share, which came in at 23.2 cents.

Metals prices have been pummelled by a combination of excess supply and waning demand in recent years.

Materials such as copper and silver have rallied so far in 2016, while gold and other precious metals have buoyed.

What Vedanta said

Agarwal added:

Vedanta Resources continues to deliver on all fronts, achieving robust operational and financial performance in the first half of the financial year. We ramped-up production as planned at our aluminium, power and iron ore businesses.